Trying to disambiguate: are we talking about sales, or shareprice/valuation? For the former, completely agree.
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People acting like Tesla price cuts are because no one wants to buy the product anymore. Meanwhile we’re seeing discounts pretty much across the board on many different makes/models. What’s the difference between a Tesla price cut and a discount off MSRP on a BMW or a Mercedes? Clearly economic factors are in play here. P.S. here on the gold coast of LI where we were reliably blue for the longest time, every other car is a Tesla. Then again all of LI has now turned red so maybe the causal effect of Elon’s political revelations has benefited him, anecdotally of course.
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The whole thing. I think share price valuation is more a reflection of sales figures, recession, and increased competition. I just think there are too many factors to definitively pin down the valuation effect Elon’s behavior is having.
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I don’t think people are acting like this. People will continue to buy Tesla, but they’ve lost the edge of being the only game in town. There ceding pickup truck and sports car sales to their competition. The passenger car and SUV markets are being targeted by every major manufacturer now in some fashion.
Tesla is just reaction to the market just as everyone else is, but in their own way.
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I agree with you. I was referring to the folks on this thread who are making that claim.
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Just like how they were going to move to Canada in 2016.
All but the most extreme are still going to buy the cars, and eventually those people will too.
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And MAGA’s were going to move to Alaska if Biden won. But demand for Tesla has fallen off a cliff.
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Sure, prices are going up. That’s inflation.
I don’t disagree with anything you’ve stated, but I’m suggesting that we’re approaching an inflection point where relatively small EV makers like Tesla are going up against the Walmarts of auto production.
Sure, nascent technology, R&D costs, and false starts are going to drive up per unit costs at the onset. Give it time. Wait for Biden’s $2.8B in grants for domestic EV production to begin flowing into the economy, along with $5B in the Infrastructure Law to build a national charging network.
If Tesla survives, it’ll be a boutique brand for wealthy folks. That’s where the market is headed, and judging by TSLA’s stock performance, I am clearly not alone in this outlook.
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Try refuting the points so we can understand your reaction.
Cutting a pasting a meme is meaningless.
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Who woulda thought that the NYC/LA basement dwellers would be the ones to make or break Tesla? Got any empirical data to support your hypothesis or are you basing it all on your feelings?
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A future “boutique brand for the wealthy” doesn’t drop their prices as much as 23% on their best selling lines.
The name of the game is volume and they’re ready to snuff out the competition in the BEV space. Even if market share were to become an issue, the CCS network and overall plug and play experience as is can’t handle even what’s out on the road now, much less multiples of that.
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https://electrek.co/2023/01/12/amid-demand-concerns-tesla-cuts-prices-by-up-to-13k-in-us/
While every other manufacturer struggles to meet ev demand, Tesla has too much supply.
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Also how many huge Tesla factories have been built and are coming fully online in the last 12-18 months. The backlog has been worked off. They can build more and so need to keep selling more. Adjusting the price back down to 12 months ago and getting the double bonus of the $7500 tax rebate back makes a huge value play for all, and especially anyone making $150k or less.
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Anither thread devolves into politics on the internet.
Yep, this is a pointless thread, but like masturbation, I enjoy it.
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Again, the idea that the demand for Tesla is tanking due to Elon’s political stance is pure conjecture. There is no evidence of that other than speculative analysis. Will some people refuse to touch anything associated with Elon Musk? Sure. Enough to hinder the future of Tesla? I doubt it.
Tesla doesn’t discount off MSRP like many/most other auto manufacturers are currently doing. Instead they lower/raise their MSRP’s depending on the market. So while it may look bad that they are lowering their MSRP, it’s the same as a discount you would get on a BMW. This is more likely a result of a poor economic outlook which will continue to soften demand for higher priced items.
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Why are we so upset about Tesla’s market cap reduction? If anything, we should be celebrating these failures and encouraging more of them. Consider this your 6 month reminder that Twitter has barely managed to achieve Olive Garden revenue after almost 20 years in business. Bread sticks will continue to carry more economic weight. Are we forgetting about FTX, Theranos, uBiome and a myriad of other silly shit that Silicon Valley has managed to shovel out over the last decade? Don’t know about everyone else, but I personally celebrate these failures and encourage more of them. They help separate VCs from their money (this group has fucked up healthcare for us). Second, Silicon Valley success stories are usually stories of societal failure. Facebook’s “success” is to amplify monetized clickbait that rots brains and poisons our political environment with misinformation. Uber’s “success” is a service more expensive than historical taxis that swapped full time insured employees with precariously uninsured gig workers. Fear the successes more than the failures. Every time someone uses the word “disruption” know that they mean the disruption of productive discourse and livelihoods.
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Well said tbh
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Personally IDGAF, except for being right that it’s a car company, not a tech company, and the valuation adjustment is starting to reflect that.
I love all of this, except this isn’t just a VC or PE money being vaporized (a smell I’d wear as cologne if someone sold it, because it’s a smell that reminds me of work), this is real consumers upfront and financed purchases. The big guy may have lost $ in share value, much of which came from shareholders — Cathy Wood buys-in, Elon sells off — but many consumers who could have made a different decision a month ago are being burned. Maybe they deserved it (FAAFO)?
Which may be good because China won’t let them expand beyond the current footprint. Most of the lineup is stale. There is still demand, but they didn’t sell/deliver everything they built last quarter, even with their first ever discounts. Repeating that this coming quarter, after further price cuts — which failed to juice the stock price — makes them look even more like a car company.
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